The problem of resilience of the Algerian economy facing exogenous shocks

Abstract

The purpose of this contribution is to analyze the resilience of the Algerian economy in the face of "shocks" from the fall in oil prices on the international market and the fallout from the coronavirus pandemic, in an undiversified economy whose incomes depend almost on a single resource, namely hydrocarbons, crucially poses the problem of the resilience of the national economy in the face of these "shocks". Does the Algerian economy have the capacity for resilience allowing the absorption of these external "shocks" (prolonged fall in hydrocarbon prices on the international market, and impacts of the coronavirus)? This is the problem that we will try to investigate in this communication. We formulate the hypothesis for Algeria, of a weak capacity of resilience, taking into account the current productive structures of the Algerian economy and the mode of economic governance prevailing to date.T o demonstrate this, we opted for a hypothetico-deductive methodology which led us to successively approach the concept of economic resilience and its measurement, the foundations of the development of economic resilience (the diversification of the sources of economic growth) and finally the resilience of the Algerian economy and the reforms to optimize it.